The pace of the Israeli venture market has cooled slightly after the Israel Venture Capital (IVC) survey for Q3 revealed that US$336m was raised by 90 high-tech companies, a decrease in amount of 13% from the previous quarter.
The second quarter of 2005 saw US$387m raised by 98 companies, and the latest figures represent a 23% decline from the US$438m accumulated by 113 businesses in Q1.
“Despite the apparent drop, capital raised in the first nine months of 2005 indicates stability in capital flow relative to 2004 figures,” said Efrat Zakai, director of research at IVC.
Until the end of September this year a total of US$1.07bn has been raised, a slight dip from last year’s figure of US$1.1bn. The IVC predicts around US$1.4bn will be raised in total for 2005.
The average company financing round was US$3.73m in Q3, compared with US$3.94m in the previous quarter and US$3.87m in the third quarter of 2004. Sixty-six companies attracted more than US$1m, and 15 of these raised between US$5m and US$10m each, four companies raised between US$10m and US$20m each and one company raised more than US$20m.